In January this year, Netflix announced that it will be releasing a substantial number of its U.S. customers from price grandfathering on its HD plan. In May 2014, the company had increased its subscription charges, but grandfathered loyal customers allowing them to continue subscriptions at earlier rates for another two years. This grace period will expire in May 2016 for a significant number of consumers and they will have to start paying $2 more every month for their existing Netflix subscriptions. The company believes that given these members have been with Netflix for at least two years; the churn due to the increase in subscription charges thus should not be very high. As Netflix continues its focus on high quality original content and bandwidth-saving plans, it should be able to retain existing subscribers and acquire new subscribers. However, with Amazon Prime and YouTube Red introducing streaming services with increased focus on original content, competition for Netflix is intensifying, which could lead to slower subscriber growth in the U.S.

from Forbes – Tech http://ift.tt/23kAJAa
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